China has lifted export controls on computer chips essential for car production and paused other trade restrictions, signaling an easing of tensions with the United States and other nations. These measures follow an agreement between President Xi Jinping and his US counterpart Donald Trump to reduce tariffs and pause other trade actions for a year.

• Nexperia, a Dutch-owned company that processes 70% of its chips in China, will be exempt from export curbs for civilian use.
• The moves came after warnings from organizations like the European Automobile Manufacturers’ Association (EMEA) of impending supply shortages that could impact carmakers like Volvo Cars, Volkswagen, and Jaguar Land Rover.
• China also suspended a ban on exports of "dual-use items" like gallium and germanium to the US until November 27, 2026, and waived port fees for US-linked ships for a year.